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{
    "id": 1003283,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1003283/?format=api",
    "text_counter": 367,
    "type": "speech",
    "speaker_name": "Kitui Rural, CCU",
    "speaker_title": "Hon. David Mboni",
    "speaker": {
        "id": 13388,
        "legal_name": "David Mwalika Mboni",
        "slug": "david-mwalika-mboni-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me this opportunity to say one or two things concerning this Bill. It is a fact that we are passing this Bill in a very difficult situation when the world economy as whole is facing challenges due to coronavirus. But we need to understand some of these proposals are made to expand the tax base. For example, the 1 per cent minimum tax on turnover. On the 1 per cent levy on profits accrued from minerals, it is very obvious that some companies have been operating in this country for the last five to 10 years without declaring profits, and you wonder how they have been surviving. It is obvious, and people know, that a lot of companies which do not declare profits have two sets of accounts books. One set is for making profits and the other one for making loses. Therefore, they do not pay tax and yet they also benefit from public services and infrastructure financed by people who pay tax. It is, therefore, important for them to pay tax. The tax proposal in this area is that we are supposed to collect Kshs21 billion. So, let them also pay tax like other Kenyans. On the issue of digital market taxation, this area is purely controlled by foreigners. Sixty per cent of this sector is controlled by foreigners. Only 40 per cent is controlled by Kenyans. As Hon. Kimunya said, this is deductible tax. You pay 1 per cent as a resident company then at your final tax returns, you deduct what you are paid as 1 per cent from digital service tax. More importantly, what we also need to think about are these foreigners – the non-resident companies do not pay VAT while our companies do. This then disadvantages our companies in terms of competition. Uber services are cheaper than any other service providers in Kenya. So, we need to The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}